A number of businesses in south London have been told they may have to relocate under a £25m redevelopment plan.

Proposals involve transforming Peckham Rye Station and the surrounding area, creating a new square.

Southwark Council said a business support team would be in place to help affected firms.

Mechanic Ian Smith, who works in the area, said relocating would mean many customers would go elsewhere.

Mr Smith, from Blenheim Motors, said: "There are customers that are still coming here from 30 years ago and obviously their relations still use this garage so if they move me they're likely to use a garage that is local to here and them."

Southwark Council is working with the Greater London Authority and Network Rail on the project which could see plans go to a council committee for consideration in the first quarter of next year.

An architect is due to be appointed and as soon as plans are drawn up. A council spokeswoman said a lengthy public consultation would be held.

Fiona Colley, the council's cabinet member for regeneration, said: "We're in a really difficult time, while people want to see the investment and improvements. We don't have the absolute answers for businesses as to exactly how they will or won't be affected, but we are engaging a business support team to help them."